ABSTRACT: A regional CGE model of Canada is developed to estimate the effect on aggregate welfare and the welfare of individual provinces of achieving Canada's Kyoto target using alternative climate policies. We consider a domestic carbon tax, international permit trading, as well as the Liberal federal government's 2005 Project Green. Project Green (PG) includes a mix of tradable permits, covenants, sectoral exemptions as well as a heavy reliance on voluntary and targeted measures. The plan is similar in many respects to the Climate Change Plan (CCP) released in 2002.